The new fund offer or NFO of the scheme is open for subscription. It will close on September 5. The scheme will re-open for continuous sale and repurchase within five business days from the date of allotment of units under NFO.
The performance of the scheme will be benchmarked against S&P BSE Teck Index.
Balakumar B and Dhruv Muchhal (overseas investment) will manage the scheme.
The investment objective of the scheme is to provide long-term capital appreciation by investing predominantly in equity and equity related securities of technology & technology related companies.
The minimum application amount for purchase / switches is Rs 100 and any amount thereafter. The scheme will invest 80-100% in equity and equity related instruments of technology & technology related companies, 0-20% in equity and equity related instruments of companies other than technology & technology related companies, 0-10% in units of REITs and InvITs, 0-20% in debt securities, money market instruments and fixed income derivatives, and 0-20% in units of mutual fund.The fund will follow a bottom-up approach to stock-picking and choose companies which are expected to derive benefit from development, use and advancement of technology. The scheme will follow an investment strategy of investing across segments and market capitalization. The scheme is suitable for investors who are seeking to generate long-term capital appreciation.
Should you invest? ETMutualFunds always ask investors to invest in an NFO only if it offers something unique – that is, some investment option that is not available in the market or adding something to the existing available option.
There are six IT schemes in the market. There are also several passive IT schemes. Five active IT schemes have a long performance record of over five years.
Aditya Birla Sun Life Digital India Fund, topper in five year horizon, gave 20.48%. ICICI Prudential Technology Fund gave 20.20%. SBI Technology Opportunities Fund, and Tata Digital India Fund gave around 19.52%, and 18.28% respectively. Franklin India Technology Fund gave 17.49% in the same time period.
Technology funds are sectoral funds. Thematic or sector schemes invest most of their corpus in a particular sector, and the performance of schemes is based on performance of the sector. That is why thematic or sector funds are recommended only to investors with thorough knowledge about the sector.
You should invest in these schemes only if you have a long investment horizon or have intimate knowledge about the sector to time the entry and exit in these schemes.
